Eligible amount & cost of a gold loan. The Gold Loan Calculator takes gold weight (grams), purity, market price per gram of 24k gold, loan-to-value offered, interest rate, tenure and returns maximum loan amount plus value of the gold, interest over the tenure, total to repay at the end. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
The headline interest rate is only part of what a loan costs: fees, the structure of repayments and how the rate is quoted (flat or reducing) all change the true cost. Compare offers on total interest and effective rate, not on EMI alone. Use the worked example below to check the maths against your own figures.
How the Gold Loan Calculator works
Lenders advance up to 75% of the gold's value (the RBI cap), valuing jewellery by its pure gold content. Interest is usually charged as a bullet payment at the end of a short tenure.
Worked example
With the example values (gold weight (grams) of 50, purity "22 karat", market price per gram of 24k gold of ₹7,000, loan-to-value offered of 75%, interest rate of 12%, tenure of 12 months), the maximum loan amount is ₹240,625.00; value of the gold ₹320,833.33, interest over the tenure ₹28,875.00, total to repay at the end ₹269,500.00. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is maximum loan amount calculated?
gold value = grams × price × purity ÷ 24; loan = value × LTV; interest = loan × rate × months ÷ 12.
Which figures do I need?
Gold weight (grams), purity, market price per gram of 24k gold, loan-to-value offered, interest rate, tenure. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
Does the result include fees and charges?
Only where there is a fee input. Processing fees, insurance and prepayment charges add to the true cost; the APR and loan comparison calculators include them.
